Continuing Care Retirement Communities
Industry Profile Report
Dive Deep into the industry with a 25+ page industry report (pdf format) including the following chapters
Industry Overview Current Conditions, Industry Structure, How Firms Operate, Industry Trends, Credit Underwriting & Risks, and Industry Forecast.
Call Preparation Call Prep Questions, Industry Terms, and Weblinks.
Financial Insights Working Capital, Capital Financing, Business Valuation, and Financial Benchmarks.
Industry Profile Excerpts
Industry Overview
The 3,800 continuing care retirement communities (CCRCs) in the US provide assisted living with on-site skilled nursing facilities, independent living, assisted living, and skilled nursing services either on campus or at nearby facilities. These facilities involve a contract each resident signs, entitling them to a continuum of care in exchange for payment of an entrance fee and ongoing monthly fees.
Sensitivity to Capital Markets
Difficulty in obtaining financing or in re-financing existing debt can force CCRCs to delay needed renovations, postpone planned expansions, or prevent them from breaking ground.
Demographic Trends Grow Demand
Since January 2011, baby boomers have been turning age 65 at a rate of 10,000 per day - and this will continue for 20 years.
Industry size & Structure
The average CCRC has about 123 employees and generates $10.8 million in annual revenue.
- There are about 3,800 CCRC firms in the US operating 5,400 facilities with $41 billion in annual revenue and 468,000 employees.
- About half of facilities are "true" CCRCs offering care from independent living through skilled nursing under a contract that guarantees a continuum of care in exchange for an entrance fee and ongoing monthly fees.
- About half of "true" CCRCs are affiliated with faith-based organizations, such as Presbyterian, Lutheran, Methodist, or Catholic churches.
- Companies that own and operate multiple communities include Life Care Services and Erickson Living.
- CCRCs are located in a range of geographical areas from urban to suburban to rural.
Industry Forecast
Continuing Care Retirement Communities Industry Growth
Recent Developments
Nov 8, 2024 - Many Nurses See AI Tools As Beneficial
- About 64% of nurses who responded to a McKinsey-American Nurses Foundation survey said that they’d like to see more AI tools in their work. Approximately 4% of those surveyed worked in skilled nursing facilities (SNFs), a number not too far off from the total percentage of US nurses employed by SNFs (6%). Nurses are concerned with how the technology will influence their day-to-day routines. Seventy percent of respondents said that AI would be very helpful in medication management, and the same amount said it would be very helpful in eliminating tasks and raising job satisfaction. Many nurses said that they see where AI could lighten their workload but some said that they are wary of the newness of it all. Nurses’ top three concerns with using AI were accuracy, the absence of human interaction, and uncertainty about how to use it.
- The supply of available beds in senior living is greater than the demand, according to Marcy Baskin, vice president of elder care consulting firm Senior Care Authority. “However, that [balance] varies regionally, [and] we expect the supply-demand ratio to change as the baby boomer population ages. The number of assisted living locations is increasing while [the number of] skilled nursing facilities (SNFs) for long-term care is decreasing. SNFs are moving more toward rehabilitation services for people needing short-term stays that are often covered by Medicare.” States with the most assisted living communities include California (4,100), Washington (1,902), Florida (1,804), Texas (1,295) Wisconsin (1,272) and Oregon (1,208), according to the US Census Bureau.
- The severity of the continuing care retirement community (CCRC) survey process is increasing the cost to care for skilled patients, according to Skilled Nursing News. Some CCRCs have decided to partner with existing skilled nursing operators – rather than own their own SNFs – as costs and regulatory issues compound, according to Stu Almer, CEO of Gurwin Healthcare System. CCRCs are required to have a SNF referral option, but an organization doesn’t need to maintain their own facility, he said. “Everyone [in skilled nursing] is reevaluating,” he said, "asking themselves if they should downsize, sell, or convert into some other type of housing."
- Nursing and residential care industry revenue increased 9.2% year over year and 1.7% quarter over quarter during the second quarter of 2024, according to the US Census Bureau. Continuing care retirement community industry employment and average wages for nonsupervisory employees increased slightly during the first nine months of 2024, according to the US Bureau of Labor Statistics. Continuing care retirement community industry sales are forecast to grow at a 4.74% compounded annual rate from 2024 to 2028, faster than the growth of the overall economy, according to Inforum and the Interindustry Economic Research Fund, Inc.
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